Sealink Unfazed by Escalating Costs
Sealink International is not concerned with the current turbulent economy and escalating material costs, the Staronline.com reported. Company officials said the group’s performance would not be affected as it was able to mitigate the high material costs with its build and sell strategy. Sealink’s foreign revenue is mostly contributed by its shipbuilding business, while chartering activities bring in the bulk of the local revenue. For this financial year ending Dec 31 (FY08) and FY09, the company was expecting 65:35 revenue distribution for the shipbuilding and chartering segments respectively. On its expansion plans, Sealink has allocated capital expenditure of RM50mil to enlarge its fabrication yard and RM10mil to RM20mil to build a ship-repair yard.